Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Adams, Inc. sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July Budgeted cost of

image text in transcribedimage text in transcribed

image text in transcribedimage text in transcribed

Adams, Inc. sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July Budgeted cost of goods sold April $67,000 May $77,000 June $87,000 July $93,000 Adams had a beginning inventory balance of $3,700 on April 1 and a beginning balance in accounts payable of $15,600. The company desires to maintain an ending inventory balance equal to 15 percent of the next period's cost of goods sold. Adams makes all purchases on account. The company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. Required a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Adams will report on the end-of-quarter pro forma balance sheet. c. Prepare a schedule of cash payments for inventory for April, May, and June. d. Determine the balance in accounts payable Adams will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare an inventory purchases budget for April, May, and June. April Inventory Purchases Budget Budgeted cost of goods sold May 77,000 June $ 87.000 $ 67,000 $ Inventory needed 67,000 77.000 87,000 Required purchases (on account) $ 67,000 $ 77,000 $ 87,000 Required A Required B Required C Required D Determine the amount of ending inventory Adams will report on the end-of-quarter pro forma balance sheet. Ending inventory Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Determine the balance in accounts payable Adams will report on the end-of-quarter pro forma balance sheet. Accounts payable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting And Reporting A Global Perspective

Authors: Herve Stolowy, Yuan Ding, Luc Paugam

6th Edition

147376730X, 9781473767300

More Books

Students also viewed these Accounting questions

Question

6.57 Find a zo such that a. P(zzo) 0.9750 b. P(zzo) 0.3594

Answered: 1 week ago